A Philadelphia-area private equity real estate fund announced it has sold an 11-property multifamily housing portfolio totaling 2,615 units, including four Madison Apartment Group sites in central and west Florida.
New York City’s Investcorp, a global alternative asset manager, bought the portfolio from Equus Capital Partners Ltd. of Newtown Square, Penn., for $370 million. In addition to the Florida sites, the package includes properties in Atlanta, Raleigh, St. Louis and Philadelphia.
The Florida properties in the deal include:
- Madison Clermont, northeast of U.S. Highway 27 and State Road 50 in Clermont. The three-story, 250-unit complex built in 2001 sold for $39.5 million, according to Lake County records.
- Madison Lake Ned, on Cypress Gardens Road north of State Road 540 in Winter Haven. The two-story, 212-unit community built in 2001 fetched $32.6 million.
- Madison Park Road, between Interstate 4 and U.S. Highway 92 in Plant City. The complex, built in 2001, sold for $32.6 million.
- Madison Riverwalk, northwest of Red Bug Lake Road and Dodd Road in Winter Park. The three-story, 280-unit complex built in 2001 sold for $48 million.
The deeds for the transactions were filed in Lake, Polk, Seminole and Hillsborough counties on May 22-23.
The Florida apartment complexes provide higher-end lodging with individual units ranging from 1,000 to 3,400 square feet with one, two or three bedrooms. Nine-foot ceilings, garden tubs and sunrooms are typical.
The communities feature resort-class amenities such as fitness studios and large pools, with a concierge to help organize and complete moving-related tasks. An online portal allows residents to pay rent, submit service requests or connect with members of the local management team.
Madison Apartment Group, an affiliate of Equus Capital Partners, provided on-site management and leasing and oversaw a $20 million capital improvement program since Equus acquired the 11 properties between 2013 and 2015. Investcorp has retained Madison to continue the asset and property management duties for the portfolio.
“We are pleased with the execution of the sale of this portfolio and look forward to our new relationship with Investcorp in bringing further improvements to those communities,” said Christopher Locatell, senior vice president and director of dispositions for Equus. “With active management and a strategic renovation program and the overall 95% occupancy, the portfolio is positioned to deliver an attractive, stable and predictable cash flow for the new venture with Investcorp while at the same time the markets continue to support further enhancement opportunities and ability to push rents higher.”
The Equus private equity fund that held the properties made 30 investments in multifamily, office and industrial properties across the country since its inception in 2013. Twenty-six of those properties have been sold, the company said. The latest acquisition marks Investcorp’s largest U.S. real estate portfolio acquisition completed in the past decade.
“As one of the most active investors in U.S. multifamily real estate, our real estate investment business continues to be an important driver of our ambitious long-term global growth strategy on the path to $50 billion in (assets under management.,)” said Mohammed Alardhi, Executive Chairman of Investcorp.
Michael Moriarty, Investcorp’s Principal in Real Estate, said the portfolio was an attractive investment because of the high occupancy levels and opportunity for value-add renovations.
Since its founding in 1982, Investcorp has made more than 185 private equity deals in the U.S., Europe, the Middle East, North Africa and Asia across a wide range of sectors. It has invested in Tiffany & Co. of New York, Fleetpride of Texas, and Associated Materials of Ohio, among others.